If the Real Interest Rate Is Below the Equilibrium Real

question 226

Multiple Choice

If the real interest rate is below the equilibrium real interest rate,

• A) lenders will be unable to find borrowers willing to borrow all of the available funds and the supply of loanable funds curve will shift leftward.
• B) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve will shift rightward.
• C) borrowers will be unable to borrow all of the funds they want to borrow and the demand for loanable funds curve will shift leftward.
• D) a shortage of of loanable funds will cause the real interest rate to rise.

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